TPG (TPG) 2025 Conference June 11, 2025 12:15 PM ET Speaker0 Before we get started, for important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. Note that taking of photographs and use of recording devices is also not allowed. If you have any questions, please reach out to your Morgan Stanley sales representative. With that out of the way, good afternoon everyone and thanks for sticking with us here on day two of the Morgan Stanley Financials ...

Core Insights - Prospect Capital Corporation's President and COO, Grier Eliasek, emphasizes attractive opportunities in the lower and core middle-market for lenders seeking favorable deal terms and higher risk-adjusted returns [1][2] - The company focuses on underwriting strategies that target less cyclical industries and companies with resilient cash flows, while negotiating lower leverage multiples and tighter covenants to manage credit risk [2][3] Market Position - Prospect Capital is recognized as a market leader in the lower and core middle-market direct lending space, with a notable trend of significant capital being raised for direct lending at the upper end of the market [2][3] - The company has maintained financial ratio maintenance covenants in the lower and core middle-market, which have largely disappeared in the upper middle-market due to intense competition [3] Performance Metrics - Prospect Capital Corporation has achieved a realized gross annualized internal rate of return (IRR) of approximately 13%, based on total capital invested of about $11.8 billion and total proceeds from exited investments of approximately $14.9 billion [4]

Financial Data and Key Metrics Changes - For the quarter ended March 31, GAAP net investment income was $0.28 per share, and core net investment income was also $0.28 per share. Adjusted for additional shares issued, core NII would have been $0.30 per share [24] - As of March 31, NAV was $11.7 per share, down 2.4% from $11.34 per share last quarter [24] - The portfolio grew to $2.3 billion, up 7% from the prior quarter [18] Business Line Data and Key Metrics Changes - During the quarter, the company invested $293 million in three new and 54 existing portfolio companies at a weighted average yield of 9.9% [18] - The weighted average debt to EBITDA for new investments was 4.3 times, with an interest coverage of 2.3 times and a loan to value of 39% [10] - The portfolio remains highly diversified with 159 companies across 49 different industries, and the weighted average yield on debt investments was 10.5% [26] Market Data and Key Metrics Changes - Approximately 80% of originations came from existing borrowers, while 20% were from new platform investments [7] - The pricing on first lien term loans appears to have stabilized in the SERFR plus 500 to $5.50 range for high-quality assets [10] - The debt to equity ratio was 1.3 times as of March 31 [25] Company Strategy and Development Direction - The company focuses on the core middle market, providing strategic capital to borrowers in five key sectors: business services, consumer, government services and defense, healthcare, and software and technology [12] - The company aims to preserve capital while seeking investment opportunities in growing middle market companies with high free cash flow conversion [22] - The company has raised significant equity capital through its ATM program, totaling $163 million during the quarter [21] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company had a solid quarter and expects to ramp up portfolio activity in the coming months [6][7] - The management believes that the current vintage of core middle market loans is excellent, with strong credit quality and limited exposure to tariffs [11][12] - The company anticipates that the uncertainty surrounding tariffs needs to be resolved for M&A activity to pick up [34] Other Important Information - The company has taken significant steps to strengthen its balance sheet, increasing total leverage by $750 million over the last twelve months [18] - The company closed on a new $361 million securitization financing with a weighted average spread of 1.59% [19] - Nonaccruals represent only 2.2% of the portfolio at cost and 1.2% at market value, which improved to 1% at cost and 0.5% at market value after the quarter [14][27] Q&A Session Summary Question: On the equity raising during the quarter, was this a long-term capital build or an increase in pipeline activity? - Management indicated that the capital raised was to prepare for a robust 2025, despite a slowdown in activity due to recent market events [29] Question: What is necessary to unlock new M&A activity in the market? - Management stated that certainty in tariffs and a stable environment are needed to encourage decision-making and M&A activity [34] Question: How much of the activity with existing borrowers is repricing versus growth capital? - Management noted that most activity is from existing platforms growing, with repricing having ended due to market changes [40] Question: How does the company view tariff sensitivity for its portfolio versus larger businesses? - Management emphasized that most sectors in their portfolio are not significantly impacted by tariffs, with limited exposure [45] Question: How does the company plan to deploy additional equity into the senior loan fund? - Management expects to deploy excess capital within a six to twelve-month timeframe, depending on market conditions [52] Question: What are the long-term opportunities for growing the joint venture or adding partners? - Management expressed interest in potentially adding another JV partner over time, depending on finding the right fit [56]

Trinity Capital (TRIN) Q1 2025 Earnings Call May 07, 2025 12:00 PM ET Speaker0 Good morning. My name is Katie, and I will be your conference operator today. At this time, I would like to welcome everyone to Trinity Capital's First Quarter twenty twenty five Earnings Conference Call. All participants have been placed in a listen only mode and the floor will be opened for questions following the presentation. It is now my pleasure to turn the call over to Ben Malcolmson, Head of Investor Relations for Trinity ...

New Mountain Finance (NMFC) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Good day, and welcome to the New Mountain Finance Corporation First Quarter twenty twenty five Earnings Conference Call. All participants will be in listen only mode. Please note this event is being recorded. I would now like to turn the conference over to Mr. John Klein, President and Chief Executive Officer. Please go ahead. Speaker1 Thank you, and good morning, everyone. Welcome to New Mountain Finance Corporation's first ...

Nuveen Churchill Direct Lending (NYSE: NCDL ) is not as recognizable as the likes of Blackstone Secured Lending Fund ( BXSL ) or Morgan Stanley Direct Lending Fund ( MSDL ), but it's also one of the BDCs worthWelcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I’ve built a rock-solid pillar in my financial foundation through dividend investing. I believe it’s one of the most accessible paths t ...

BlackRock TCP Capital Corp (NASDAQ:TCPC) Q4 2024 Results Conference Call February 27, 2025 1:00 PM ET Company Participants Michaela Murray - Investor Relations Phil Tseng - Chairman & Chief Executive Officer Erik Cuellar - Chief Financial Officer Dan Worrell - Co-CIO Jason Mehring - President Conference Call Participants Finian O'Shea - Wells Fargo Securities Robert Dodd - Raymond James Christopher Nolan - Ladenburg Thalmann Operator Ladies and gentlemen, good afternoon. Welcome everyone to BlackRock TCP Ca ...

New Mountain Finance Corporation (NASDAQ:NMFC) Q4 2024 Earnings Conference Call February 27, 2025 10:00 AM ET Company Participants John Kline - President and CEO Steve Klinsky - Chairman and CEO, New Mountain Capital Laura Holson - Chief Operating Officer Kris Corbett - Chief Financial Officer and Treasurer Conference Call Participants Robert Dodd - Raymond James Operator Good day, and welcome to the New Mountain Finance Corporation's Fourth Quarter 2024 Earnings Call. All participants will be in a listen-o ...

FS KKR Capital Corp (NYSE:FSK) Q4 2024 Earnings Conference Call February 27, 2025 9:00 AM ET Company Participants Anna Kleinhenn - Head of Investor Relations Michael Forman - Chief Executive Officer Daniel Pietrzak - Co-President and Chief Investment Officer Brian Gerson - Co-President Steven Lilly - Chief Financial Officer Conference Call Participants Kenneth Lee - RBC Capital Markets Casey Alexander - Compass Point, LLC Robert Dodd - Raymond James Finian O'Shea - Wells Fargo Securities Maxwell Fritscher - ...